Asked by Jeremy Dyzenhaus on Jun 10, 2024
Verified
Liabilities are owners' claims on assets.
Owners' Claims
The financial interest or claims that business owners have in the assets of their company, often calculated as equity.
Assets
Economic resources owned or controlled by a business or individual, expected to produce value or benefit in the future.
- Understand the significance and application of the accounting equation.
- Recognize how business transactions affect the accounting equation and financial statements.
Verified Answer
ME
Mariana ElizondoJun 10, 2024
Final Answer :
False
Explanation :
Liabilities are obligations or debts that the company owes to others, such as creditors or lenders, and are not owners' claims on assets. Owners' claims on assets are represented by equity.
Learning Objectives
- Understand the significance and application of the accounting equation.
- Recognize how business transactions affect the accounting equation and financial statements.
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